TSMC sales in May fall for 2nd straight month

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Taipei, June 8 (CNA) Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chipmaker, said Friday that sales for May fell slightly from the previous month, the second consecutive month revenue has fallen month-on-month.

In May, TSMC, which supplies processors for iPhones, posted NT$80.97 billion (US$2.72 billion) in sales, down 1.1 percent from a month earlier, after a 21 percent month-on-month decline in April.

Market analysts said the continued fall in TSMC's revenue reflected weakening global demand for iPhones, while a slower market for mining devices used in cryptocurrency transactions also attributed to the sales decline.

However, the May figure was still up 11.2 percent from a year earlier, TSMC said.

In addition, the month-on-month sales decline in May was a significant improvement from the fall in April, TSMC data showed.

In the first five months of this year, TSMC's consolidated sales stood at NT$410.92 billion, up 13.0 percent from a year earlier.

In mid-April, TSMC told an investor conference it expected consolidated sales for the second quarter to range from US$7.8 billion to US$7.9 billion, down 7-8 percent from a quarter earlier in the wake of slow season effects.

In the April-May period, TSMC's sales totaled NT$162.84 billion so it is still possible for the chipmaker to achieve its sales guidance for the second quarter, with month-on-month sales decline moderating in May, analysts said.

Analysts said with peak season effects approaching, TSMC's sales growth momentum is expected to pick up in the third quarter.

TSMC has said it expects its 2018 sales to grow 10 percent in U.S. dollar terms from a year earlier with chips made on its advanced 7 nanometer process estimated to make up 10 percent of the total.

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